Every entrepreneur should complete a feasibility study before writing a full-blown business plan. While preparing the feasibility study you may uncover information that helps you fine tune or refocus your idea(s), or you may conclude that the business simply is not feasible. This document describes your feasibility study.
When conducting your feasibility study, do not exaggerate or misrepresent who you are, your capabilities, and facts of the business. As in real life, your plan will be penalized if you make factual statements that you cannot substantiate. For example, do not say you has conducted a market survey that you have not done, and please represent your experience and skills accurately.
Feasibility Study Outline and Evaluation
The Feasibility Study outline is intended to help you complete your study in a logical manner. Answering these questions will help you put together the essential elements of the study. In this early stage of idea development, understand that you will have only part of the information needed to build a solid business plan. Nonetheless, use your best judgment and research skills to thoroughly answer all of the questions.
Proposed Venture: Laptop doubles as printer (two in one laptop)
The feasibility study should include:
1. Business Concept
1. Industry Analysis
1. Financial Plan
1. Feasibility Decision
Feasibility analysis guidelines
1. Business Concept
This is a short section: clear, direct, to the point. Use the two-sentence format from Geoff Moore:
For people in the healthcare or education industry who require access to printers daily, Computer Prints is a technological product that allows you to print anytime, anywhere! Unlike a stationary printer, our product is attached and set up directly to your personal laptop.
2. Industry Analysis
Describe and outline the industry in which you will compete. When finished with this section, you and your readers should understand the dynamics, problems, and opportunities driving your industry.
2.a. What is the industry(ies) that addresses this market?
2.b. What trends are important in this industry?
2.c. Who are the major competitors (in an industry sense)? It may make sense to discuss competitors in
terms of genres or competitors or in terms of the big players in the industry. If your company is operating
locally, you may want to profile the industry’s big players here and leave the specific competitors for the
Market Analysis section.
2.d. How large is the industry? What is its growth potential?
3. Financial Plan
3.a. How much up-front cash do you need to start the business? Deposit for lease, down payment on equipment, permits, improvements, supplies, insurance, computer, advertising, salaries etc. Provide a full and realistic breakdown.
3.b. How much will it cost to produce your product or service? Provide a full and realistic breakdown of your fixed costs and variable costs?
3.c. How much do you expect to sell every month? How much money will this bring in? This is your cash inflow.
3.d. How do you expect sales and revenues to change over time?
4. Feasibility Decision
This is the bottom line. You may have decided that the business is not feasible. If so, it’s better to find out on paper. If you decide there is a good opportunity, however, complete the “Timeline to Launch” section.
4.a. Based on the financial analysis you have undertaken above, does this business look attractive enough to proceed?
4.b. If this business is not feasible, what needs to change to make it feasible? Are there specific market conditions that need to change? Would the business/organization be feasible if it were pursued as a corporate new venture or an internal project by a mid- or large-size existing organization? Why?
4.c. What are the strengths and weaknesses of this business? Be specific.
This section lists your sources. Use one of the accepted formats, e.g. APA or MLA formatting. Alternatively, you may use footnotes.
Analysis of Feasibility
Before developing a full-fledged business plan, every entrepreneur shoauld conduct a feasibility study. You may discover knowledge that helps you fine-tune or refocus your idea(s) while preparing the feasibility study, or you may conclude that the business is simply not possible. Your feasibility study is described in this document.
Do not overstate or misrepresent who you are, your capabilities, or the realities of the business when performing your feasibility study. If you make factual statements that you can’t back up, your strategy will be penalized, just like in real life. For example, don’t claim to have undertaken a market survey if you haven’t, and be honest about your experience and skills.
Outline and Evaluation of a Feasibility Study
The Feasibility Study Outline is meant to assist you.